What if I am under 62 & disabled?
The application legally authorizes the lender to begin the application process but the lender cannot incur any costs on your behalf until Step 2 (counseling) is completed. The application is not binding and can be canceled at any point during the process. The application will specify the reverse mortgage fees, interest rates, and loan amounts.
Can someone qualify if they already have a mortgage?
Yes. Where there is sufficient equity a majority of people who take out a reverse mortgage use it to pay off their existing mortgage so they can stop making monthly mortgage payments.
Does everyone over 62 qualify?
Any borrower aged 62 or older with a property to refinance or purchase qualifies for a reverse mortgage. Your age determines how much you will qualify for, and the older you are the more you qualify for.
What if there is no equity?
This is called a “shortfall.” This means that the reverse mortgage would not provide enough money to pay off the existing mortgage on the home — it is coming up ”short.” In this situation, some homeowners may choose to make up the difference by paying down the balance on their mortgage by the amount of the shortfall so that they can qualify for the reverse mortgage. The best practice is to speak with a qualified Revers Mortgage Advisor about your own unique situation to determine if there is a program that will meet your goals.